Recently, Microsoft released Internet Explorer 8, which boasted much better standards compliance than previous iterations of the browser. While it passed the Acid2 test, IE8 failed miserably in the Acid3 test, and many people criticised Microsoft for it. Microsoft Australia's Nick Hodge has stated that Microsoft purposefully decided not to support Acid3, because the test tests against draft standards.

They are conforming preciesly to the published standards of the W3C and no more. This leaves the W3C free to make ammendments to their draft standards that won't conflict with the most widely deployed implementation.

Not a bit of it. Microsoft are miles short of meeting W3C standards that have matured to the point of finality. DOM level 2 was published in 2000, and hasn't changed since. SVG 1.1 was published in January 2003, and hasn't changed since.

Microsoft are 5 or more years behind the times when it comes to "conforming preciesly to the published standards of the W3C".